Why you should hold on to JSPL stock
Satya Sontanam
BL Research Bureau |
Updated on
May 30, 2021
Jindal Steel & Power Ltd. at the current price of ₹396 continues to offer balanced risk-reward
The stock of Jindal Steel & Power (JSPL) has risen more than sixfold since its lows in April 2020. The buoyancy in the stock performance was in line with other steel stocks on account of favourable global conditions resulting from capacity cut by Chinese steel plants, increasing demand for the metal globally and domestically, and loose monetary policy measures across the globe that are expected to increase the infrastructure spending.
JSPL reported highest ever consolidated profit (from continuing operations) in the FY21 of ₹5,527 crore, as against the loss of about ₹574 crore in the previous year. In fact, the company posted positive net profits after six years of losses. FY21 also marked a year of earning highest ever consolidated EBITDA of ₹14,444 crore, more than double compar